India Hotels Market: Industry Analysis and Forecast (2024-2030)

India Hotels Market size was valued at USD 32.10 Milion in 2023 and the total India Hotel revenue is expected to grow at a CAGR of 9.2% from 2024 to 2030, reaching nearly USD 59.44 Milion by 2030.
India Hotels Market Overview
India Hotels Market refers to the collective industry of accommodation services provided by hostels across various cities and tourist destinations. It includes establishments such as luxury hotels, budget hotels, resorts, and homestays, catering to domestic and international travelers. India Hotels Market has advanced implementations such as a user of touchless check-in and check-out and digital room keys, personalized concierge services through mobile apps, and the use of AI as a chatbot for customer support. These advancements not only improve operational efficiency but also offer a seamless and convenient experience to guests. The Evolve Back Kamalapura Palace in Hampi has been selected as the official venue partner for hosting the G20 members for the highly anticipated Third G20 Culture Working Group (CWG) and the Third G20 Sherpa meetings.

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India Hotels Market Scope and Research Methodology
The India Hotels Market report offers a thorough evaluation of the market for the forecast period. It examines patterns and factors shaping the market, including drivers, restraints, opportunities, and challenges. The report also provides expected revenue growth for the Asia Pacific market during the forecast period. The research on the Asia Pacific market analyses of major applications, business strategies, and influencing factors. The report examines market trends, volume, cost, share, supply and demand, and utilizes methods like SWOT and PESTLE analysis. Primary research resources include databases and surveys.
India Hotels Market Dynamics:
A significant increase in operational activities

International sports events, trade fairs, and exhibitions, which are expected to attract both international and domestic tourists. The MMR report analysis consists of the impact of covid-19 pandemic on the sales revenue of the market leaders, followers, and disruptors. The India Hotels Market is driven by major factors such as the increasing purchasing power parity of domestic travelers, the airline industry's growth, a rise in foreign tourist arrivals, and relaxed visa restrictions. Additionally, the reduction of the Goods and Services Tax (GST) rates by the GST council, from 28% to 18% for luxury hotels and from 18% to 12% for midscale hotels, is expected to further boost the Indian hotels market during the forecast period. Nevertheless, the Indian hotel industry faces concerns regarding the shortage of room supply and high labor costs. The industry is already experiencing an employee deficit, and retaining existing employees is challenging due to the low switching cost for employees.

Leading India hotel companies are capitalizing on advanced technologies such as artificial intelligence, machine learning, IoT, near-field communication, mobile payment systems, and data analytics. These technologies are being used to increase online reservations, optimize advertising spending, gain a deeper understanding of guest preferences, and foster stronger customer relationships. These technological advancements are anticipated to create profitable opportunities for the India Hotels Market in the forecast period.

Increasing Population, Rising Disposable Income the Drive the India Hotels Market

The India Hotels Market has witnessed a substantial uptick, largely propelled by a surge in hotel projects. Occupancy rates have shown a notable increase, ranging from 60-67% compared to the previous year, while average rates (ARR) have fully rebounded, exhibiting a significant rise of 37-39% year-over-year. Consequently, Revenue per Available Room (RevPAR) has experienced remarkable growth, reaching 89-91% higher than the previous year. Driven by this robust resurgence in demand, hotel companies have accelerated their growth strategies, resulting in a more than 35% increase in brand signings by keys compared to the previous year. India is poised to welcome 481 projects with 57,879 rooms, according to data from the Top Hotel Projects construction database. For instance, IHCL plans to integrate 8,700 rooms, LTH aims to add 2,600 rooms by FY26, and Marriott International anticipates opening 12 hotels this year, contributing around 1,200 rooms. Radisson Hotel Group has also extended its presence in India by signing 21 hotels across nine brand portfolios last year. Indian Hoteliers are strategically expanding into leisure destinations and Tier-3 and -4 cities, recognizing the significant growth potential in these regions.

Competition from Alternative Technologies Hampers the Market Growth

The India Hotels Market faces competition from emerging alternative technologies, such as automated guided vehicles (AGVs) and robotic material handling systems. AGVs are self-guided vehicles that navigate predetermined routes using sensors and software, eliminating the need for human operators. Robotic systems utilize advanced automation to handle material movement tasks within warehouses and manufacturing facilities. These alternative technologies pose a challenge to traditional Hotel due to their potential for higher efficiency, precision, and adaptability. AGVs offer consistent performance, reduced labor costs, and the ability to operate 24/7 without breaks. Robotic systems can optimize material flow, space utilization, and inventory management through integrated software control. While traditional Hotel continue to excel in certain scenarios, such as heavy lifting and outdoor applications, AGVs and robotic systems are gaining traction for repetitive and precise indoor tasks. Their potential to enhance operational efficiency, minimize errors, and lower labor costs can be appealing to industries seeking streamlined automation solutions.

To remain competitive, the traditional Hotel industry needs to address the advancements of AGVs and robotic systems. This might involve innovation in areas like autonomous capabilities, integration with warehouse management systems, and cost-effective implementation. The choice between traditional Hotel and alternative technologies depends on factors like operational requirements, upfront investment, maintenance costs, and the level of automation desired by businesses in the evolving landscape of material handling solutions.

New Technologies are creating lucrative growth opportunities for India Hotels Market

The rapid technological progress, Hotel have undergone remarkable enhancements in terms of their efficiency. A range of novel technologies contributed to evolution. For example, many modern Hotel models Feature regenerative braking systems that capture the energy generated by slowing down the vehicle and storing it for later use. This allows the operator to draw on stored energy when accelerating again and ultimately improves the overall efficiency of the Hotel. This is expected to drive the India Hotels Market growth. Additionally, integrated telematics systems provide real-time data on fuel consumption, service needs, and more, allowing operators to identify areas of improvement and optimize operations accordingly. The integration of telematics systems introduced real-time data insights into fuel consumption, maintenance needs, and more. This enables operators to pinpoint areas that warrant enhancement, leading to operational optimization.

Another enhancement involves refined navigation systems, such as laser guidance and vision-based navigation. These systems facilitate smoother navigation through confined spaces without the need for constant human intervention. Beyond simplifying operator tasks, these navigation systems also mitigate collision risks, thereby augmenting operational efficiency. These technological advances are revolutionizing Hotel, rendering them more efficient.
India Hotels Market Segment Analysis:
Based on Type, Chain-type hotels are a dominant force in India's hospitality sector, commanding a substantial 40% market share in both revenue and property numbers, equating to a India Hotels Market value. With over 20-25 chain-type hotels spanning luxury to budget segments, they have shaped the industry by providing standardized services, brand recognition, and reliability to guests. Leading international chains like Marriott International, Hilton Worldwide, IHG, AccorHotels, and Radisson Hotel Group drive this sector's growth. Factors such as increasing tourism, rising incomes, and changing consumer preferences have fueled their expansion, particularly into Tier-2, Tier-3, and emerging markets. Chain-type hotels are pivotal players in India's hospitality landscape, catering to diverse traveler needs and generating substantial industry revenue.
India Hotels Market Regional Insights:
New Delhi has dominated the India Hotels Market in 2021 expected to show the same dominance over the forecast period, due to its status as an economic and political hub, attracting a large number of business travelers and corporate events. As the primary international gateway to India, it receives a substantial influx of foreign tourists. New Delhi's cultural and historical significance, a diverse range of accommodations, and the hosting of business conferences and trade fairs contribute to its thriving hotel market. Government support, a well-established hospitality industry, and cultural events and festivals further bolster New Delhi's position as a preferred destination for travelers.

Chandigarh's urban development and modern infrastructure, along with its thriving industries and renowned educational institutions, attract a significant number of business travelers and visitors. This drives the demand for hotel accommodations in the city. Furthermore, Chandigarh has well-planned architecture, and beautiful gardens, attracting tourists that appeal to domestic and international tourists, further increasing the need for hotels. Moreover, Chandigarh's excellent connectivity and its proximity to popular destinations make it a convenient transit point, which contributes to the growth of the hotel market in the city. The local government's proactive efforts in promoting tourism and enhancing the hospitality infrastructure also play a significant role in fueling this growth.

India Hotels Market Competitive Landscapes:

The India Hotels Market is characterized by intense competition among both global and regional players. Key market participants are constantly focusing on product innovation, technological advancements, strategic partnerships, and market expansion to gain a competitive edge. Understanding the competitive landscape is crucial for industry players to identify their position, assess market opportunities, and develop effective strategies.

The Indian hotel market exhibits a high degree of fragmentation, characterized by a significant presence of numerous small and unorganized players. The mid-scale and economy segments are expected to dominate the market over the forecast period. Notably, international hotel chains such as Hyatt Hotels Corporation, InterContinental Hotel Groups, Marriott International, and Radisson Blue Hotels are experiencing rapid expansion in India. Simultaneously, Indian groups such as Taj, OYO, Oberoi, ITC, and The Leela are primarily focused on owning and operating their hotels. The Indian hotel distribution chain consists of primary and supporting activities that encompass hotel service operations, branding, and distribution. Branding plays a crucial role as it establishes the identity and visibility of a hotel chain. Taj Hotel and OYO Rooms are noteworthy examples, representing luxury and budget accommodations respectively.

To cater to the budget accommodation segment, online platforms such as Oravel Stays (OYO Rooms), WudStay, Zostel Hospitality, FabHotels, and Treebo have formed partnerships with standalone hotels and guesthouses. These partnerships enable marketing, distribution, and quality assessments for these establishments. These companies have successfully raised significant venture funding and are implementing ambitious expansion plans. Within a mere three years since its inception, OYO Rooms has emerged as one of India's largest hotel chains, boasting approximately 300+ cities, 10,000+ Hotels, and 200,000+ Rooms to over 500 cities encompassing 28 states and 9 UTs with 18000+ hotels and 270,000+ rooms in India.
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India Hotels Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 32.10 Mn.


Forecast Period 2024 to 2030 CAGR:
9.4%
Market Size in 2030:
US $ 59.44 Mn.


 Segments Covered:
by Type
Chain Hotels
Independent Hotels


by Level of Service
Service Apartments
Budget and Economy Hotels
Mid and Upper Mid-Scale Hotels
Luxury Hotels


by Sales Channel
Online
Offline



India Hotels Market Key Players:
1. OYO(Gurugram, Haryana)
2. Lemon Tree Hotel(Delhi)
3. Treebo(Karnataka)
4. Hyatt Hotels Corporation(Chicago Chicago)
5. InterContinental Hotel Groups(United Kingdom)
6. Marriott International(United States)
7. Radisson Blue Hotels(Belgium)
8. Shangri La Hotels & Resorts(Hong Kong)
9. Taj Hotels Resorts & Places(Maharashtra)
10. The Lalit Hotels(New Delhi)
11. The Leela Palace(Maharashtra)
12. The Oberoi Group(Delhi)
13. The Park Hotels(West Bengal)
14. Bharat Hotels Limited(New Delhi)
15. Hotel Leelaventure Limited(Maharashtra)
16. ITC Hotels Limited(West Bengal)
17. The Indian Hotels Company Limited(Maharashtra)
18. Sarovar Hotels Private Limited(Maharashtra)

FAQs:
1. Which region is expected to lead the India Hotels Market during the forecast period?
Ans. New Delhi is expected to lead the India Hotels Market during the forecast period.

2. What is the projected market size and growth rate of the India Hotels Market ?
Ans. India Hotels Market size was valued at USD 32.10 Milion in 2023 and the total India Hotel revenue is expected to grow at a CAGR of 9.4% from 2024 to 2030, reaching nearly USD 59.44 Milion by 2030.

3. What segments are covered in the India Hotels Market report?
Ans. The segments covered in the India Hotels Market report are Type, Segment, and Sales Channel.

4. What is the study period of the India Hotels Market ?
Ans: India's Hotel market will be studied from 2023 to 2030.